TSLA Stock Down 3%, Tesla Offers 5,000 Jobs to Texas County as Part of Proposal for New Factory

UTC by Tolu Ajiboye · 3 min read
TSLA Stock Down 3%, Tesla Offers 5,000 Jobs to Texas County as Part of Proposal for New Factory
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Tesla has promised, among many other things, to create 5,000 jobs for the Texas county of Travis, as it proposes to build a new factory there. TSLA stock is down today.

As part of plans for its mega plant, Tesla Inc (NASDAQ: TSLA) is offering at least 5,000 jobs to a county in Texas. Tesla says the Texas jobs are “middle-skill,” offering them as benefits of setting up the factory in the state.

Meanwhile, today the Tesla stock price is falling. At the time of writing, it is trading at $965.50 (-3.62%). The current market cap is $178.98 billion.

According to a presentation by Tesla representatives to Travis County on Tuesday, June 23, the automaker promised that these jobs would pay workers well. Also, workers will not require any higher or advanced educations for employment.

Tesla in Texas

Travis County Commissioners in Texas, did not make any decisions during the presentation on a video conference. The commissioners will however consider several things, including the public’s opinion, before final approval. If everything goes according to plan, the factory will be the fourth vehicle assembly Tesla owns.

Tesla’s offer is especially noteworthy at a time where unemployment levels have increased because of the coronavirus. The coronavirus pandemic has had very severe effects on the economy, also affecting unemployment. Figures from the US Federal Reserve shows that back in April, Travis County’s unemployment rate hit 12.4%. In the same period last year, the unemployment rate was 22%.

More on Tesla’s plans

The proposed factory may cover up to 5 million square feet upon completion. By then, Tesla may have spent up to $1 billion on the construction, which it hopes will have a serious impact on the immediate community. Reportedly, the permanent staff at the plant will earn $47,147.

In addition to Tesla’s job offerings, the company is also offering other benefits. Tesla plans to partner with the Austin Community College and Workforce Solutions Area, for a workforce pipeline that will be beneficial to members of the Travis County public. Also, Tesla will partner with the Travis County Justice Planning for a workforce pipeline that will benefit criminals in the county. This will be for coming out of the justice system.

Tesla will also provide affordable housing for the county, via a partnership with Travis County Corporations. The company, in partnership with Capital Metro, will also improve commuting to and from the plant.

The above plan, among others, is part of the tax breaks Tesla proposed. If the deal goes through, Tesla will receive tax breaks for up to 20 years. The tax rebate will come at an 80% discount for the first 10 years. The other half will see a 65% discount.

Tesla’s total investment in Travis County could be up to $25 billion and could provide up to 30,000 jobs. The new factory will also build and assemble Tesla’s new Cybertruck and its Model Y.

Last year, China struck a deal with the Chinese government for its Shanghai factory. It was the first time China allowed a fully-owned foreign company in the country. The new factory began delivering made-in-China Model 3 vehicles earlier this year.

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Tolu Ajiboye
Author Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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